Pure Extracts (CSE: PULL) has closed the first tranche of its ongoing private placement offering of special warrants, while upsizing the placement as a whole due to investor demand. The company has closed a total of $3.1 million in gross proceeds under the first tranche following the closing of a lead order.
With the major lead order coming through, the company has seen the overall size of the offering upsized to $5.0 million, which is being facilitated via the sale of 9.9 million special warrants at a price of $0.505 per special warrant. Special warrants will convert to units of the company upon the earlier of a receipt of final prospectus of the offering, or four months and one day from the date of issuance of the securities.
Each unit under the offering contains one common share and one half of common share purchase warrant. Each warrant has an expiry 24 months from the date of issuance, with an exercise price of $0.65 per warrant.
Proceeds from the offering are to be used for general working capital and for the expansion of capacity of its extraction operation.
Pure Extracts last traded at $0.60 on the CSE.
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